Snap is laying off 16 percent of its workforce, blames AI

2 hours ago 1

Snap is laying off around 1,000 staff, amounting to 16 percent of its workforce, which it will seemingly replace with AI. The cuts were announced in a company-wide memo from CEO Evan Spiegel, who added that more than 300 open roles are also being closed.

Spiegel said the "incredibly difficult" decision would likely save Snap more than $500 million by the second half of 2026, in turn helping it to "establish a clearer path to net-income profitability." Impacted staff were notified by email and the company’s North America-based team were instructed to work from home. Snap said it would provide four-month severance packages to those affected by the layoffs, as well as healthcare and other entitlements.

"While these changes are necessary to realize Snap’s long-term potential, we believe that rapid advancements in artificial intelligence enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers," ...

Source: https://www.engadget.com/big-tech/snap-is-laying-off-16-percent-of-its-workforce-blames-ai-162456069.html?src=rss

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